AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) announced private placement of 17,642,482 units, consisting of one share of common stock and a warrant to purchase one share of common stock, at a price of $0.965 per unit, for gross proceeds of approximately $17 million. The transaction was led by New Enterprise Associates and included New Leaf Venture Partners and Perceptive Advisors, among other institutional investors. Certain members of the Company’s management team and Board of Directors also participated in the financing.
Piper Jaffray & Co. served as the exclusive placement agent for the financing.
Concurrent with the closing, the Company also announced that it entered into an amendment to its 2010 loan and security agreement, with Hercules Capital, Inc. Pursuant to the loan amendment, the Company borrowed an additional $5.0 million from Hercules. If specified conditions are met, AVEO may borrow an additional tranche of $5.0 million from Hercules in the first half of 2017 and repayment of principal on AVEO’s loans may be deferred to begin in 2018.
“We expect that proceeds from our private placement and amended loan agreement, together with our existing resources and certain anticipated operational milestone payments, will allow us to fully fund our U.S. tivozanib development strategy, including through at least pivotal Phase 3 TIVO-3 top-line data and a tivozanib-PD-1 inhibitor combination trial,” saidMichael Bailey, president and chief executive officer. “Securing funding for these studies, which we look forward to initiating in the near term, represents an important step forward toward our goal of making tivozanib available to patients with renal cell cancer in North America. We also look forward to upcoming decisions on marketing applications in the EU, submitted by our partner EUSA Pharma, and Russia, submitted by our partnerPharmstandard, for tivozanib as a treatment for first line renal cell cancer. We believe that these potential milestones, along with progress in our partnership-driven pipeline, could enable us to create meaningful shareholder value.” (Original Source)
Shares of AVEO Pharmaceuticals closed yesterday at $0.86, down $0.02 or -1.75%. AVEO has a 1-year high of $3.50 and a 1-year low of $0.82. The stock’s 50-day moving average is $0.95 and its 200-day moving average is $1.04.
On the ratings front, FBR analyst Vernon Bernardino reiterated a Buy rating on AVEO, with a price target of $3, in a report issued on May 13. The current price target implies an upside of 248.8% from current levels. According to TipRanks.com, Bernardino has a yearly average return of -22%, a 20% success rate, and is ranked #3820 out of 3833 analysts.
AVEO Pharmaceuticals, Inc. operates as a biopharmaceutical company dedicated to advancing a broad portfolio of targeted therapeutics for oncology and other areas of unmet medical need. Its proprietary human response platform provides the company unique insights into cancer and related disease biology and is being leveraged in the discovery and clinical development of its therapeutic candidates. The company’s product candidates include AV-203, ficlatuzumab, tivozanib and AV-380. AVEO Pharmaceuticals was founded by Ronald A. DePinho, Lynda Chin and Kenneth E. Weg on October 19, 2001 and is headquartered in Cambridge, MA.